Company Case Studies
The following companies have worked with our specialist team to tackle specific areas of need. In most cases, these have been based upon costs that have been perceived to be outside the company's immediate control.
Moorfield Industries
Based in Glossop, Derbyshire, Moorfield Industries are manufacturers and packers for the highly competitive aftercare automotive market. Their customer-base continually demands ‘cost-down’ programmes and adjusts their order pricing accordingly. Moorfield’s supplier base could no longer operate to the cost parameters being set leaving Moorfield with an urgent need to look at ways of improving their own cost-base. By providing professional Procurement advice and support, we undertook a product and process re-engineering project with members of the company and working together, achieved the following benefits:
- 25% reduction to costs.
- 21% cost containment (non-acceptance of supplier price increases).
- Improved control and application of the key manufacturing ingredient (we reduced the volume of ingredient applied to product fabrics).
- Improved product performance.
- Agreed to supply in smaller, more frequent lot sizes (reducing working capital tied-up in work in progress and end stock-hold quantities).
Morris Lubricants
Based in Shropshire, Morris Lubricants are the UK’s largest privately-owned lubricant oil business. The company were facing spiralling packaging costs that needed to be tackled. As a result of the following, significant improvements were seen, not just in reducing costs, but also in terms of business service and performance.
- We rationalised the supply-base from 6 to 1.
- Introduction of a 24 month Supply Agreement (which secured sustainable supply quality & pricing benefits over the medium-term).
- Achieved a standard 72 hours turnaround time from point of order to delivery (such reliability of quality product delivery is a key competitive strength within this market).
- 7.5% reduction to costs combined with 9% cost containment (avoidance of supplier price increases).
- Achievement of a 10% cost saving via product simplification and rationalisation (arrived at by running value-engineering forums involving key people within the company).
James Briggs
Manufacturing Process Issues
As a division of ITW (one Europe’s largest manufacturers of aerosol and consumer chemicals), James Briggs Limited had a problematic manufacturing process that was affecting business-wide performance. We were asked to work with the company to identify the root cause and remedy the situation. An initial study of the process highlighted problems with specialist area being manufactured internally for which James Briggs had a limited internal skill-base. Other problems revolved around space and resource utilisation. The following actions were implemented:
- Outsourcing of the specialist process function (once a suitable supplier was identified, this put James Briggs Limited in control of quality and delivery standards).
- Establishment of daily raw materials requirements and introduction of daily ‘kanban’ deliveries to point of manufacture (several gains; only charged for supplies when used, no need to hold large stock quantities, involving the supplier more closely in ensuring replenishment needs are met, greater supplier understanding of their customer needs).
- Introduction of a value-engineering workshop to reduce product cost and improve product quality.
The result impact on costs were significant:
- 18% reduction in product costs
- Elimination of 1000sqft storage need (factory space now only used for core activities).
- A new Supply base sold capital equipment on the company's behalf.
James Briggs
Active Ingredient Supply
James Briggs Limited (see above) also faced a competitive threat to a core and key product range, as the main ingredient (from a cost and technical perspective) was perceived to be procured from a monopolistic supply base. We needed to find a solution that guaranteed low cost whilst maintaining a quality product and service.
We carried out the following:
- Identified worldwide manufacturers
- Tapped directly into the American market
- Obtained a US price base
- Obtained direct shipments (avoiding the European distributor intervention)
- Secured Supply Agreements (avoiding intervention by any agents)
- Agreed monthly shipments that were equal to the European shipment quanities.
This resulted in a 19% lower cost to James Briggs Limited than was available via the European market for the supply of a high quality product with matching service.